Tax Research Memo
Professor Martin Scheckner
June 2, 2018
New Business Entity
As part of our last meeting in the office, I was assigned to support you with valuable information
on what is the best way to organize your future Florida State official entity. To respond to your
inquiries, I have done intensive research through the tax code, regulations, and official advisory
articles, which I would like to divulge to all of the participants in this new venture. Notice that,
upon establishment of new business there are two fundamental aspects to be considered which
focuses on tax and non-tax considerations. Getting to know the advantages and disadvantages
associated with each business entity very important for future decisions made. Through this
memorandum, I will document to my clients my interpretation and opinion on some of the
foremost issues that may arise on each and what is best for all participants. I will refer to the
situation each participant independently and as a whole for the best benefit of the new
FACTS: - Based on facts provided by clients.
ISSUES: This tax memorandum will address multiples issues that concern each in this project.
1. Different forms of business entities that could be structured under the Florida
Departments of State Divisions of Corporations.
2. After the research, the type of entity structure I would suggest my clients choose based on
specifics goals, needs, and requirement of participants.
3. Legal documents that need to be filled upon formation to identify the distribution of
ownership and their position in the new entity.
4. The flexibility of the entity selected.
5. Positive and negative tax impacts on the entity suggested.
6. Inconveniency if individual’s ownership interest is owned by any entities that they own.
7. Allocation of income or losses among the participants.
8. Tax form to be filed ...